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Posted: Wed Jul 22, 2009 5:07 am
by paulg4
Can a creditor or debt collection petiton for bankruptcy without going for a CCJ first.
Many thanks
Posted: Wed Jul 22, 2009 5:19 am
by Debtwitch
A creditor can petition if there is an unsatisfied statutory demand or also if an individual is in breach of a IVA
Posted: Wed Jul 22, 2009 6:34 am
by kallis3
However, creditors don't often petition as it cost them more to make you bankrupt than it does if you do it yourself.
Posted: Wed Jul 22, 2009 7:52 am
by aerohead
So what is a statutory demand.
Posted: Wed Jul 22, 2009 8:03 am
by size5
A statutory demand gives a person a 21 day warning to pay a debt, without invoking any court action. After that, the demand has run its course and MAY be followed by BR proceedings. In the vast majority of cases this doesn't happen however.
Regards.
Posted: Wed Jul 22, 2009 8:27 am
by aerohead
Thanks for the info ok more questions.
1 - If a creditor petitions for my bankruptcy roughly how much will it cost them?
2 - As I have several creditors and one of them petitions for my bankruptcy does that one then have an advantage over the others or will each creditor get an even split of any assets etc.
Thanks again
Posted: Wed Jul 22, 2009 8:39 am
by size5
Not too sure of any precise figure, but it is estimated that a creditor funded BR petition costs £1500 and over, which is why they rarely go down this route if they can avoid it. If you are made Br then the Official Receiver will look at all claims against any assets or income, not just the one funding the petition.
Regards.
Posted: Wed Jul 22, 2009 8:39 am
by Skippy
I don't know how much it will cost a creditor to make you BR.
If a creditor makes you BR all other outstanding debts will be included and any money from the sale of assets or an IPA will be divided between all creditors on a pro rata basis after the OR has taken their fees.
Posted: Wed Jul 22, 2009 8:42 am
by aerohead
Ok so how much would OR fees be and that would be on top of BR fees
Thanks again
Posted: Wed Jul 22, 2009 9:03 am
by MelanieGiles
The current Court cost for a creditor petition is around £680, then there will be petitioning creditor's legal costs on top. The OR will charge at least £1,700 for administering the bankruptcy, and if realisations are more than £2,000, 17% of the balance will be automatically deducted by the Insolvency Service as an Ad Valorem Fee.
Bankruptcy is an expensive business for creditors, which is why they rarely use this route to recover their debts.